This Support May Launch Ethereum to $500, But Signs of Weakness Remain
- Ethereum has seen a strong rebound from its daily lows. This has allowed it to climb into the $390 region
- This upsurge came about in tandem with that seen by Bitcoin and most other major cryptocurrencies
- This market-wide movement has allowed cryptocurrencies that were battered by yesterday’s downturn to erase virtually all of their recent losses
- For ETH, one analyst is now setting his sights on a movement up towards $500 in the near-term
- That being said, there is one downside liquidity region that could hamper its growth
Ethereum and the entire cryptocurrency market are currently consolidating after incurring a swift upswing that allowed them to erase yesterday’s losses.
The price action has favored bulls, as both ETH and BTC have yet to break below any key high time frame support levels.
This means that their macro strength remains intact and that they may now be poised to see further upside.
One analyst is even expecting Ethereum to surge as high as $500 in the near-term. That being said, there is one downside liquidity region that could slow its ascent.
Ethereum Shows Signs of Strength But Has Yet to Tap Key Liquidity Region at $360
At the time of writing, Ethereum is trading up just over 2% at its current price of $392.
This marks a notable upswing from daily lows of $380 that were set at the bottom of the harsh selloff seen yesterday.
Analysts believe that although the cryptocurrency’s defense of this level is a positive sign, it still has yet to tap either of the two liquidity regions that sit around its current price level – one at around $360 and the other at $427.
Because bulls have yet to propel Ethereum past $400, there’s a chance it will soon plunge lower before it can continue its mid-term ascent.
“I currently see two potential draws on the market. The 1st is the liquidity below $362 directly into mostly untested support. The 2nd is a short squeeze by pushing to $427~,” one analyst noted.
Image Courtesy of Chase_NL. Chart via TradingView.
This Key Support Could Help Send ETH Flying to $500
Another analyst recently explained that the support Ethereum has established within the $380 region is quite significant, and may allow the cryptocurrency to surge as high as $500 in the near-term.
“The green line is support for ETH. Just a matter of time until it starts trending to $500.”
Image Courtesy of Galaxy. Chart via TradingView.
Part of Ethereum’s near-term outlook rests in the hands of Bitcoin, as any notable BTC weakness or strength will influence ETH.
Featured image from Unsplash. Charts from TradingView.